How to give your money away

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Scott Kaplowitch, a Boston tax accountant, recently counseled a couple on how to quickly help their daughter and son-in-law come up with money for a down payment on a new home.

His advice: Use the federal Annual Exclusion Gift to the max.

Within 30 days, the couple funneled $112,000 to their daughter and son-in-law, all of it in cash, tax free to recipients, and with minimal or no reporting requirements to the Internal Revenue Service.

“A lot of clients know about the annual exclusion gift, but they don’t know how to use it,” said Kaplowitch, a CPA at Edelstein & Co. LLP. “There’s a lot of different ways you can use the gift law but it can get confusing, depending on how you do it.”

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